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HomeMy WebLinkAbout1999-11-09; City Council; 15490; Proposal Requests For CDBG Home Program. CITY OF CARLSBAD -AGENDA BILL DEPT. H/RED TITLE: AUTHORIZATION TO DISTRIBUTE REQUEST FOR DEPT. HD. PROPOSALS FOR THE 2000-2001 CDBGlHOME PROGRAM; ACCEPT COMMENTS AND APPROVE CDBGlHOME PROGRAM c1l-y All-y. FUNDING PLAN STRATEGY; AND APPROVE THE CDBGlHOME PROGRAM FUNDING APPLICATION REVIEW PROCESS. CITY MGR. RECOMMENDED ACTION: Adopt Resolution No. 94- 475, to authorize staff to distribute a “Request for Proposals” for the 2000-2001 Community Development Block Grant (CDBG)/Home Investment Partnership (HOME) Program; accept comments and approve the 2000-2001 CDBG/HOME Funding Plan Strategy; and, approve the CDBG/HOME application review process. ITEM EXPLANATION: In fiscal year 2000-2001, the City of Carlsbad will be entitled to a new allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). As a participant in the San Diego Urban County Home Investment Partnership (HOME) Consortium, the City will also receive federal HOME funds. To receive these funds, the City must submit a “CDBG/HOME Consolidated Funding Plan” to HUD by May 15, 1999. CDBG Pronram The total amount of CDBG funding available for the 2000-2001 program year is approximately $704,504. This figure includes an estimated $609,000 in new CDBG entitlement allocation, $78,850 in program income from Villa Loma property lease payments, and $16,654; which is available for reallocation from previously approved activities. Of the $704,504 total CDBG funds available, approximately $121,800 will be used for the City’s administration of the CDBG Program and $185,278 will be used for payment of the City’s Section 108 Loan for the Villa Loma affordable housing project. The primary objective of the CDBG program is to assist low and moderate-income persons/households. Each proposed project must meet at least one (1) of the national objectives for the CDBG Program and at least one of the local housing and community development objectives. The local objectives for the Carlsbad CDBG program are outlined in the attached “CDBGIHOME Investment Partnership Funding Plan Strategy”-~Exhibit~~S).~-~ These- ~bjedives~refleed~the~ City’s desire-to develop aprogram Which best meets the various needs of low and moderate-income Carlsbad residents. HOME Proaram The total amount of HOME funding available for allocation to eligible projects is anticipated to be approximately $225,000. The primary objective of the HOME program is to provide affordable housing opportunities for lower income households. The City of Carlsbad>may use HOME funds to implement the following housing activities directly, through its local housing authority, or through for profit or non-profit organizations: 1) housing acquisition/rehabilitation; 2) housing rehabilitation; 3) housing construction; 4) rental assistance/security deposits; 5) homebuyer assistance; and 5) associated administration/planning activities. Citv Council CDBG/HOME Ad Hoc Committee A City Council CDBG/HOME Ad Hoc Committee was formed in 1998 to review the City’s CDBGIHOME Program Funding Strategy and develop recommendations for changes to the Strategy which might better meet the priority needs of lower income households in Carlsbad. The Ad Hoc Committee has determined that affordable housing is a top priority need for lower income households in Carlsbad and is recommending that the Funding Strategy be revised so that funds are more specifically focused on providing additional affordable housing opportunities for low income households. Staff has revised the CDBGIHOME Funding Strategy accordingly and developed a “Request for Proposals” (Exhibit 2) to reflect this recommended change. . . ** Page2ofAB# 16 $# CDBG/HOME Advisonr Committee To facilitate the selection and funding of activities which best meet the objectives of the CDBG/HOME Program, a City Council appointed CDBG/HOME Advisory Committee will be responsible for interviewing each applicant and making funding recommendations. The Advisory Committee will be assisted by staff, who will evaluate and rank each of the eligible proposals according to pre-established criteria. The Advisory Committee’s funding recommendations will then be presented to the City Council for consideration and final approval. Recommendation In order to develop Carlsbad’s 2000-2001 CDBG/HOME Program, staff is requesting the following three actions from City Council at this time: I) authorization to distribute an RFP for the Program; 2) acceptance of public comments and approval of the proposed 1999-2000 CDBG/HOME Funding Plan Strategy; and, 3) approval of the application review and funding process for CDBG and HOME funds. Due to the fact that the two year term for the previously appointed CDBGIHOME Advisory Committee has expired, staff also requests that the Mayor direct Council Members to provide recommendations for appointments to the CDBGIHOME Advisory Committee to represent each quadrant of the City. As a reminder, the Advisory Committee consists of the following members: a Planning Commissioner, a Housing Commissioner, a Senior Commissioner and a resident from each quadrant of the City. The .. Advisory Committee will need to begin its work next January. Action by the City Council will be required at a future date to appoint the Committee. FISCAL IMPACT: It is anticipated that the City will receive an estimated $609,000 in new CDBG entitlement funds and $225,000 in HOME funds during fiscal year 2000-2001. Federal regulations for the CDBG program allow the City to use a maximum of 20 percent ($121,800) of the new allocation for administration costs. Federal regulations for the HOME program allow the San Diego Urban County HOME Consortium, as the administrator, to use- a m~axim~um of 5 percent ($1.1,250) of then total HOME funds for admmrstration costs. Administration of the CDBGIHOME program can be fully funded by use of the federal funds. There is no fiscal impact on the General Fund. EXHIBITS: 1. Resolution No. 99-4qs authorizing staff to distribute a “Request for Proposals” for the 2000-2001 CDBGIHOME Program, accepting comments and approving the 2000-2001 CDBG/HOME Consolidated Funding Plan Strategy, and approving the CDBG/HOME Program Application Review Process. 2. “Request for Proposals” for Carlsbad’s 2000-2001 CDBG/HOME Program. 3. City of Carlsbad’s 2000-2001 CDBGlHOME Consolidated Funding Plan Strategy. 4. CDBG/HOME Program Application Review Process. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 l * CITY COUNCIL RESOLUTION NO. w-495. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING DISTRIBUTION OF A REQUEST FOR PROPOSALS FOR THE 2000-2001 CDBGMOME PROGRAM; ACCEPTING PUBLIC COMMENTS AND APPROVING THE 2000-2001 CDBG/HOME PROGRAM FUNDING PLAN STRATEGY; AND APPROVING THE CDBG/HOME APPLICATION REVIEW PROCESS. WHEREAS, the City of Carlsbad, California, is entitled to a new allocation of Community Development Block Grant (CDBG) funds from the U. S. Department of Housing and Urban Development (HUD) for fiscal year 2000-200 1; and, WHEREAS, on June 29, 1999 an agreement between the City and the County of San Diego was executed approving the City’s participation in the San Diego Urban County HOME Investment Partnership Consortium, and is, therefore, entitled to an allocation of HOME Investment Partnership 1 funds for the fiscal year 2000-2001; and, WHEREAS, the City Council of the City of Carlsbad held a public hearing to consider the distribution of a “Request for Proposals” for a 2000-2001 CDBGMOME Program and the required documents .for develo.pment and implementation of the 2000-200 1 CDBGLHOME Program; and, WHEREAS, the City Council has taken all testimony into account. NOW, THEREFORE BE IT HEREBY RESOLVED as follows: 1. That the above recitations are true and correct. 2. That staff of the Housing and Redevelopment Department is author&d to distribute a “Request for Proposals” for the City of Carlsbad’s 2000-200 1 CDBGLIOME Program. 3. That the City Council approves the 2000-2001 CDBG/HOME Funding Plan Strategy, required by-federal regulations, for Carlsbads CDBGLHOME Program. 4. That the City Council approves the proposed CDBGLHOME Application Review Process. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the 16th day of November, 1999, by the following vote, to wit: AYES: be+?, Hall Kulchin NOES: Finnila, Nygaard ABSENT: NONE ABSTAIN: ATTEST: KRANZ, City Clerk stant City Clerk - EXHIBIT NO. 2 CITY OF CARLSBAD 2000-200 1 COMMUNITY DEVELOPMENT BLOCK GRANT/HOME PROGRAM REQUEST FOR PROPOSALS I. Introduction Funding for the federal Community Development Block Grant (CDBG) Program is authorized under Title I of the Housing and Community Development Act. The program provides grants on a formula basis to entitled cities and counties to develop viable urban communities through the provision of decent housing, a suitable living environment and by expanding economic opportunities for low and moderate income persons. Funding for the federal Home Investment Partnership (HOME) Program is authorized under Title II of the Cranston-Gonzales National Affordable Housing Act. The program provides grants on a formula basis to entitled cities, counties and city/county consortiums to create affordable housing for lower income households. The City of Carlsbad receives HOME funds as a member of the San Diego County HOME Consortium, a group consisting of the County of San Diego and various cities in the county formed for the purpose of obtaining federal HOME funds. II. Proaram Develooment The City of Carlsbad is eligible to receive CDBG funds on an annual basis. In order for Carlsbad ’ to receive the grants, a list of community development objectives must be developed along with an outline of proposed projects. The City of Carlsbad must also certify that it has followed an approved Consolidated Plan for Housing and Community Development and that not less than 70% of the CDBG funds will be used for activities that benefit low and moderate income persons. Low and moderate income guidelines are based upon household size and a chart is attached for your reference. The City is eligible to receive HOME funds on an annual basis as a member of the San Diego County HOME Consortium. The City submits projects eligible for HOME funds to the Consortium for inclusion in the County’s Consolidated Plan. The eligibility of households for HOME assistance varies with the nature-of-the funded activity.- For -rental housing -and ~rental assistance, ~at-least 90% of benefiting households must have incomes that are no more than 60% of the median family income for the area. In rental projects with five or more assisted units, at least 20% of the units must be occupied by families with incomes that do not exceed 50% of the area median income. The incomes of households receiving HOME assistance must not exceed 80% of the area median income. Ill. Reauest for Prooosals The total amount of CDBG funds from the U.S. Department of Housing & Urban Development estimated to be available for Carlsbad in 2000-2001 is approximately $704,504. This figure includes an estimated $609,000 in new CDBG entitlement allocation and $95,504 which will be reallocated from program income and previously approved projects which were canceled or were completed with a surplus of funds. Of the $704,504 total CDBG funds available, $121,800 will be used for the City’s administration of the CDBG Program and $185,278 will be used for payment of the City’s Section 108 Loan. Approximately $9 1,350 will be available for eligible public service activities and $306,076 will be available for pubic facilities, improvements and other eligible activities. It is estimated that $225,000 in HOME funds will be available for affordable housing proposals. : . CDBG/HOME Program Request for Proposals Page 2 -0 To develop a 2000-2001 CDBG/HOME program which meets the needs of the low and moderate income population, Carlsbad requests assistance from members of the community. Citizen participation is critical to the success of the Carlsbad CDBG/HOME program. Therefore, we are encouraging all community members to consider the needs of low and moderate income persons within Carlsbad and submit an application for a proposed project(s) or service. The Proposal Review Process for the CDBG/HOME Program is attached for your information. Per federal regulations, all HOME funds must be used for affordable housing purposes and CDBG funds may be used for, but are not limited to: public service activities, acquisition of real property, relocation and demolition, rehabilitation of residential and nonresidential structures, construction of public facilities and improvements and conversion of schools for eligible purposes. In addition, CDBG funds may be used for activities relating to energy conservation and renewable energy resources. Assistance may also be provided to profit-motivated businesses to carry out economic development activities which benefit low and moderate income persons/households. The types of activities that generally are not eligible for CDBG funding include: buildings for the general conduct of government, political activities, income payments, construction of new housing and other facilities offering 24-hour care. NATIONAL OBJECTIVES The City of Cartsbad is committed to using CDBG funds to finance projects and services which provide direct benefit to low and moderate income residents. Every project proposed for the CDBG program must address at least one of the three broad National Objectives for the program. The National Objectives are: 1. Provide direct benefit to low and moderate income persons; 2. 3. Aid in the prevention or elimination of slums or blight: and Meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where no other financial resources are available to meet such needs. LOCAL OBJECTIVES In addition to meeting the National Objectives, every project proposed for CDBG funding must meet at least one of the local Community Development Objectives which are: 1. Affordable Housing 0 Provide direct benefit to lower income persons through the provision of additional affordable housing units in Carlsbad; q Provide shelter or services to homeless or near homeless persons/families which result in an improved situation through employment, permanent housing, treatment of mental, or substance abuse problems, etc.; and, 0 Provide direct assistance to lower income households to prevent or eliminate : . -0 CDBG/HOME Program Request for Proposals Page 3 residential Building or Municipal Code violations and/or improve the quality of housing units in Carlsbad through residential (rental and/or owner occupied) rehabilitation programs. 2. SOCIAL SERVICES IGENERAL): Cl Provide assistance to non-profit public service providers who meet the basic needs of lower income Carlsbad residents. Basic needs are defined as those which provide food, shelter, clothing and, in some cases, health care; 0 Provide assistance to non-profit public service providers who. offer counseling and self-improvement programs/activities for lower income Carisbad residents; and, 0 Provide assistance to non-profit public service providers who offer recreational and/or cultural programs/activities for lower income Carlsbad residents. 3. SOCIAL SERVICES KHILDREN 8, ADULTS): cl Provide assistance to organizations which administer programs that directly benefit lower income children living in Carlsbad. The programs must provide one or more of the following activities: day care, after-school care, cultural enrichment, recreation, health care/immunization or self-improvement. The City may also give priority to single-parent assistance programs such as counseling services; and 0 Provide assistance to organizations which administer programs that directly benefit low income adults living in Carlsbad. The programs must provide one or more of the following activities for adults: employment services, job training, and educatjonal programs.- Programsdesigned ~for elderly-~adult-s-only~must provide one or more of the following activities: meals, homemaking or personal assistance services, financial assistance services, counseling, transportation, or shared housing or other housing related services. It is the intent of the City to only approve CDBG/H-OME assisted projects which do not result in the displacement of low/moderate income persons from their homes. Therefore, all persons submitting project proposals to the City should consider the displacement impact upon low/moderate income households. IV. Submission of Reauest For Prooosals All persons, organizations, agencies, etc. wishing to submit an application for funding consideration under the CDBG/HOME program must obtain a “Funding Proposal Application” from the City of Carisbad Housing and Redevelopment Department. Interested persons may request a Funding Proposal Application by calling (760) 434-2818. Ten copies of each project proposal must be submitted to the attention of Frank Boensch prior to 500 p.m. on December 20. 1999 at the following address: . : . CDBG/HOME Program Request for Proposals Page 4 CITY OF CARLSBAD HOUSING AND REDEVELOPMENT DEPARTMENT 2965 ROOSEVELT STREET, SUITE B CARLSBAD, CA 92008 IV. Technical Assistance/Questions or Comments City staff is available to provide technical assistance in preparing applications and to answer questions regarding the application review process. Please contact Frank Boensch at (760) 4362818 for.information regarding technical assistance or if you have questions or comments on the CDBG/HOME Program. VI. Attachments A. Checklist of required documents to be submitted 8. Proposed CDBG/HOME Program Development Activities Schedule C. Low and Moderate-Income Guidelines D. Application for the City of Carlsbad 2000-2001 CDBG/HOME Program E. City of Carlsbad Funding Plan Strategy F. CDBG/HOME Application Review Process : -m -0 CITY OF CARLSBAD CDBGlHOME PROGRAM CHECKLIST OF REQUIRED DOCUMENTS The following information is required of all CDBGIHOME applicants. Private organizations receiving CDBGlHOME funds from previous years do not need to submit documents if they are on file at the Housing and Redevelopment Department and these documents have not changed since initially submitted. I Board of Directors’ authorization to submit CDBGIHOME application (1 Copy) I Board of Directors’ designation of authorized official(s) (1 COPY) List of Board of Directors (1 COPY) I State and Federal tax exemption determination letters (f COPY) I Financial Audit Report for ending Fiscal Year (f COPY) @ Funding proposal application. Not to exceed fifteen (15) pages total. (10 Copies, including attachments be/ow) To include the following attachments: J Attachment A Organizational chart J Attachment B Resumes of identified key personnel J Attachment C Proposed budget, itemizing revenues and expenses J Attachment D Implementation schedule for construction, rehabilitation, property acquisition, other construction related, or new public/community service activities. ~. .-~~~~~~~ ~~ J Attachment E Acquisition of Property or Construction Related Projects: Architectural plans, scope of work, estimate of costs, listing of property to be acquired or other appropriate documentation. Please note that the attachment of brochures or other information will not be accepted in lieu of completing each question on the Funding Proposal Application. Additionally, any other attachments, such as newspaper articles, not directly related to the application will not be accepted. . . 2000-2001 COMMUNITY DEVELOPMENT BLOCK GRANT/HOME PROGRAM PROPOSEDSCHEDULEOF PROGRAM DEVELOPMENT ACTIVITIES ACTIVITY Policies/Priorities Public Hearing before City Council to request authorization to distribute RFP for 2000-2001 CDBG/HOME Program. Solicitation of Proposals Distribute Request for Proposals to all interested persons, City departments and community groups. Newspaper ad announcing .availability of funds and request for proposals. Submittal deadline for proposals. Review/ Staff review of all proposals and Recommendation completion of project eligibility Process determination. Letters to persons/agencies -submitting proposals to inform them of staff’s project eligibility determinations. CDBG/HOME Advisory Committee Workshop. Advisory Committee reviews applications, interviews applicants, and develops recommendations to City Council on funding levels. DATE November 9, 1999 November -10, 1999 November 10, 1999 December 10, 1999 5:00 p.m. December 13, 1999 to January 4, 2000 January 5, 2000 January 24, 2000 6 to 7:00 p.m. February 2000 CDBG/HOME Program Schedule of Activities Page 2 ACTIVITY Approval of City Council Public Hearing to accept Consolidated Plan and public testimony on the proposed Activities projects and review staff and Funding Committee recommendations for the CDBG/HOME Program. City Council final selection of projects and funding levels for 2000- 2001 City of Carlsbad CDBGlHOME Program Funds. “Public Review and Comment Period” for proposed 2000-2003 Carisbad CDBG/HOME Consolidated Plan. City Council to authorize submission of the,Consolidated Plan as the application for CDBG funding. Deadline for Submittal Submittal of Consolidated Plan to the to U.S. Dept of HUD U.S. Department of HUD. DATE March 7, 2000 6:00 p.m. March 14, 2000 6:00 p.m. March 20, 2000 to April 20, 2000 May 2, 2000 6:00 p.m. May 15, 2000 Start of CDBG/HOME Program Year July 1, 2000 and ability to begin activities to be funded during 2000-2001 program year. , . I COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM INCOME LIMITS PY 2000-2001 (Based upon 1999 HUD Income Data for San Diego County Effective Jan. 1999) Household Size Maximum Income Per Year ($) Above Moderate (>80% of MFI) 29,401 33,601 37,801 42,001 45,351 48,701 I 52,101 55.451 Moderate Low Very Low (51 to 80% of MFI) (31 to 50% of MFI) (< 30% of MFI) 29,400 18,400 11,050 33,600 21,000 12,600 37,800 23,650 14,200 42,000 26,250 15,750 45,350 28,350 17,ooa 48,700 30,450 18,250 52,100 32,550 19,550 55.450 34,650 20.800 f/excel/CDBG Income Revised: 1 O/5/99 I I CITY OF CARLSBAD COMMUNITY DEVELOPMENT BLOCK GRANT/HOME PROGRAM FUNDING PROPOSAL APPLICATION 2000-2001 The following information must be completed by each personlagencylorganization interested in being considered for CDBG/HOME funding. All information requested must be provided or the application will be considered incomplete and will not be further evaluated for funding consideration. Please type or print clearly. Attach additional sheets or information as necessary. The application must not exceed a total of fifteen (15) pages, including the required attachments as listed in the Checklist of Required Documents. Ten copies of complete proposal package, including attachments, must be submitted prior to 500 PM on December lOti to Frank Boensch, Housing and Redevelopment Department, 2965 Roosevelt Street, Carlsbad, CA 92008-2389. ADMINISTRATING AGENCY Name of Agency: Address: Federal Tax ID Number: PROPOSED PROGRAM/PROJECT Title of Program/Project: Location of Program/Project: Contact Person: Telephone No.: ( ) Requested Funding Amount: $ BrieT Description of ~PrgrarnIProject (Describe Ihe tie%- to be perfb;im&%?Jncludiii9the activities to be undertaken or the services to be provided, the goals and objectives of the program/project, etc.): . a -e City of Carlsbad . 2000-2001 CDBGlHOME Funding Application Page 2 I. ORGANIZATIONAL ABILITY/CAPACITY A. B. C. D. E. F. This agency is: q Non-profit q For-profit 0 Local public agency q State public agency q Other (Please specify.) What is the purpose/mission of the agency? How long has this agency been in operation? Please include the date of incorporation? How long has this agency been providing the proposed program/project? Please submit an organizational chart for the agency as Attachment A. Please describe the agency’s existing staff positions directly responsible for the proposed program/project and their qualifications and experience in implementing such a program/project. (Resumes may also be submitted as Attachment B but not in lieu of a complete response.) G. Please indicate your agency’s level of experience with the CDBGlHOME program. CDBG/HOME crooram: q No or little experience, up to 1 year of using CDBG/HOME funds. cl Some experience, 2 to 3 years of using CDBG/HOME funds. q Moderate experience, 4 to 5 years of using CDBGlHOME funds. q Considerable experience, more than 5 years of using CDBG/HOME funds. H. If you have received federal funds, including CDBGlHOME funds, in previous years, have program violation findings ever been made against your agency/organization? q No q Yes If yes, please explain nature of finding(s) and how finding(s) has been addressed by your organization. . *. -a -0 City of Carisbad 2000-2001 CDBGlHOME Funding Application Page 3 Ii. FINANCIAL CAPACITY/STABILITY A. Please submit the proposed .budget for the program/project, itemizing revenues and expenses, to this application as Attachment C. indicate how the requested CDBG/HOME funds would relate to the overall proposed budget. B. Did you receive any CDBGIHOME funds from the City of Carlsbad within the last two years (1998-99 and 1999-2000) for the proposed program/project? 0 No 0 Yes If yes, please indicate amount and status of previously awarded funds (fully expended, funds remaining, program/project discontinued). CDBG/HOME funds Amount Received Status C. Did you receive any federal funds, including CDBGlHOME funding from other cities, last year (July 1999 - June 2000)? 0 No El Yes (Please list funds below.) Program Source Amount Received i $ 8. WIII additional CDBGlHOME funds be required in future years for the project? q No 0 Yes iii. BENEFiW&-BENEF tCiARiES A. . How accessible or convenient is the proposed program/project to Carlsbad residents? (Please be specific such as direct services to client’s home, transportation provided to and from facility, or relation to public transportation.) B. What is the approximate percentage of your clients that have annual family incomes in each of the following ranges: (Percentages should add to 100%; Please see the 1999- 2000 Income Limits for the CDBG/HOME Program) % of clients are at 30 percent or below of the area median income % of clients are between 31 and 50 percent of the area median income % of clients are between 51 and 80 percent of the area median income % of clients are above 80 percent of the area median income . . -0 City of Carlsbad 2000-2001 CDBG/HOME Funding Application Page 4 C. Please describe how low and moderate income persons will benefit from the proposed program/project. Include the need or problem to be addressed, as well as the population to be served or the area to be benefited. D. Please indicate the number of clients, by households or individuals, benefiting from the proposed activity and the percentage that are Carlsbad residents. Households or Persons of which % are Carlsbad residents E. Does your agency focus its activities on populations with special needs? 0 No 0 Yes (Please specify) Please specify which special needs populations. (Homeless individuals/families, Persons with disabilities, Persons with substance abuse problems, Veterans, Farm workers & day laborers, Elderly, Children, etc.) iv. IMPLEMENTATION OF ACTIVITY A. ‘Please submit a schedule for implementation of the proposed construction; rehabilitation, property acquisition, other construction related or new public/community service program/project as Attachment D. The agency must ensure the expenditure of all CDBG~)1OME~-fUnds~awarded~withi~the.program~yearr~~~ ~~~ ~- ~~ ~-~~ ~~ I, the undersigned, do hereby attest that the above information is true and correct to the best of my knowledge. Signature Title Date Date Received: Date Reviewed: Staff Person Completing Review: National Objective: Local Objective: Eligibility Determination: /c&99 -0 Exhibit No. 3 CONSOLIDATED FUNDING PLAN STRATEGY CITY OF CARLSBAD CDBG/HOME PROGRAM PY 2000-2001 . . . CITY OF CARLSBAD 2000-2001 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM STATEMENT OF COMMUNITY DEVELOPMENT OBJECTIVES The City of Carlsbad ‘Community Development Block Grant (CDBG) funds will be allocated to orgsnizatiins, agencies, City Departments, or persons to implement programs or develop/improve public facilities which meet the following community development objectives: 1. AFFORDABLE HOUSING; l Provide direct benefit to lower income persons through the provision or retention of affordable housing units in Carlsbad; l Provide shelter or services to homeless or near homeless persons/families which result in an improved situation through employment, permanent housing, treatment of mental, or substance abuse problems, etc.; and, l Provide direct assistance to lower income households to prevent or eliminate residential Building or Municipal Code violations and/or improve the quality of housing units in Carlsbad through residential (rental and/or owner occupied) rehabilitation programs. 2. SOCIAL SERVICFS (GENERALk . Provide assistance to non-profit public service providers who meet the basic needs of lower income Carlsbad residents. Basic needs are defined as those which provide food, shelter, clothing and, in some cases, health care; l Provide assistance to non-profit public service providers who offer counseiing and seif- improvement programs/actiiities for lower income Carlsbad residents; and, l Provide assistance to non-profit public service providers who offer recreational and/or cultural programs/activities for lower income Carlsbad residents. . Provide assistance to organizations which administer programs that directly benefti lower income children living in Carlsbad. The programs must provide one or more of the following activities: day care, after-school care, cultural enrichment, recreation, health care/immunization or self-improvement. The City may also give priority to single-parent assistance programs such as counseling services; and l Provide assistance to organizations which administer programs that directly benefit low income adults living in Carlsbad. The programs must provide one or more of the following activities for adults: employment services, job training, and educational programs. Programs designed for elderly adults only must provide one or more of the following activities: meals, homemaking or personal assistance services, financial assistance services, counseling, transportation, or shared housing or other housing related services. Fund Sbabiqy 2 of 5 -0 -0 CITY OF CARLSBAD 2000-2001 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUMMARY OF FUNDS AVAILABLE FOR 2000-2001 PROGRAM YEAR Source of Funds New Entitlement Grant Program tncome Reallocation of Previous Funds TOTAL m 78:849~7a 16.654.66 704,504.44 Comoleted/Canceled Prolect Funds to be Reallocated Activitv Year Status . Balance ($1 Section 108 Loan Pavment 1999 CornDIeted 16.664.6@ TOTAL 16,654.66 Funds Available bv Activity Public Service Public Facilities, Improvements/Other Program Administration’ Section 108 Loan Paymene r Amount ($1 91,350.oo 306,076&l 121 ,aoo.oo 185,278.OO TOTAL AVAILABLE FUNDS $704,504.44 1 No proposals will be accepted for CDBG funds available for planning and administrative activities. All funds will be used for the administration of the City’s CDBG Program. 2 Funds will be used for the payment of the City’s Section 108 Loan used for the acquisition of property for the Villa Loma Affordable Housing Project. Fund Sbategy 3 of 5 -0 SAN DIEGO URBAN COUNTY 2000-2001 HOME INVESTMENT PARTNERSHIP PROGRAM STRATEGY The City of Carlsbad, as a member of the San Diego Urban County HOME Consortium, will allocate its HOME Investment Partnership funds to implement the following activities directly, through local housing authorities, or for-profit or non-profit organisations: 1. Proper& AcouisitionMousina Construction HOME funds may be used for property acquisition and all other eligible costs of providing new affordable housing for lower-income persons and special needs groups. 2. Housina AcouisitiotVRehabilitation HOME funds may be used for acquisition of existing housing units with or without rehabilitation for lower-income persons and special needs groups. 3. j-lousina Rehabilitation HOME funds may be used for housing rehabilitation costs incurred separately or in connection with the acquisition of existing housing for lower-income persons and special needs groups. 4. Rental Assistance HOME funds may be used for tenant based rental assistance, related residential security deposit assistance programs, and other eligible related costs. 5. Home SuverAssistance ..~~ -- --~~~~~~.- ---~ HOME funds may be used for home buyer assistance programs for lower income persons. Such programs may include, but are not limited to, downpayment and closing cost assistance, direct loan to the home buyer, interest subsidy to the lender, or “gap” financing. 6. Administration/Planninq 5 A portion of HOME funding may be used for eligible HOME administration and planning costs, including direct administrative and overhead costs, public information, fair housing, and program development costs. Fundina Process The City’s portion of HOME funds will be awarded to eligible housing activities implemented by the City or by for profit or non-profit organizations on behalf of the City. Staff of the Housing and Redevelopment Department shall evaluate and determine those eligible housing activities to be considered for funding under the HOME Program based upon the housing need priorities established in the City’s General Plan Housing. Element and the Consolidated Plan. Staff will present to recommendations for project Fund Strategy 4of5 funding to the City Council for consideration and final approval. Additionally, the Urban County HOME funding program will be implemented through twice yearly Notices of Funding Availability (NOFA’s). Leveraae In so far as possible, HOME ‘funds will be leveraged with other public and private funding sources to enhance program productivity. Area of Activity HOME funds may be used for housing activities implemented within the City of Carlsbad. SAN DIEGO COUNTY CONSORTIUM . 2000-2001 HOME PARTNERSHIP PROGRAM TENTATIVE FUNDING ALLOCATIONS FOR 2000-2001 PROGRAM YEAR Particioatina JurisdictionS Amount ($1 Carlsbad 225,611 Encinitas 203,647 La Mesa 196,902 Santee . -l84,375 Vista 283,628 Urban County 2,117,737 TOTAL $3,212,100 Fund Strategy 5of5 . l EXHIBIT 4 CITY OF CARLSBAD CDBGlHOME PROGRAM APPLICATION REVIEW PROCESS PURPOSE To set forth procedures to be used for allocating the annual City of Carlsbad Home Investment Partnership (HOME) and Community Development Block Grant (CDBG) funds. Each year the City of Carlsbad is entitled to receive funding from the U.S. Department of Housing & Urban Development through the CDBG Program to finance projects and/or services which benefit low/moderate income persons/households within the community. The City also receives federal funds through the HOME Program to implement housing activities that benefit lower income households. In response to the City’s “Request for Proposals” for the CDBG/HOME Program, the City receives numerous applications for funding from local organizations. In an effort to facilitate the activity selection and funding allocation process, the following procedures have been established for the program. OBJECTlVE The intent of this process is to streamline the CDBGIHOME funding allocation procedures and implement specific proposal evaluation criteria which can be used to assist in the selection of activities for funding on an annual basis. This process describes the CDBGIHOME application process; outlines the review process ‘for activity selection and funding recommendations; and, summarizes the public hearing requirements. A CDBGIHOME Advisory Committee, will be appointed to review and make recommendations to the City Council on funding levels for each of the eligible activities submitted by organizations and/or city departments. PROCEDURES The goal of the City of Carl&ad is to develop a well balanced CDBGIHOMEProgram that reflects the various needs of its low to moderate income residents, with three primary areas of focus: 1) affordable housing; 2) general social services for lower income persons; and 3) services for children and adults, +y&fjing-the &&y-.-.. ..-~~~~~ -~-. --.- The following procedures outline the steps to be used by the Advisory Committee and staff of the Housing and Redevelopment Department in selecting activities which provide for a well balanced program and in making recommendations for allocation of the funds on an annual basis: 1. Interested persons, non-profit organizations, City departments and others may submit a request for funding on the appropriate application form. A public notice in a local newspaper of general circulation will indicate how to obtain an application and the due date for all proposals. Generally, the application review process will begin in November or December of each year. 2. Upon receipt of proposals/applications for funding, Housing and Redevelopment Department staff will make a determination regarding the eligibility of each proposed project for funding consideration under the program. Requests for funds shall be considered for funding only if the application is complete and demonstrates that the following conditions have been met: a. The governing board formally authorized the organization’s request for CDBG and/or HOME funds from the City of Carlsbad and authorized official to bind organization into subsequent agreements for CDBG funds ; b. The proposed use of funds is an eligible activity, per the Federal regulations for the CDBG and/or HOME program; , . APPLICATION REVIEW PROCESS PAGE 2 . C. The organization and the proposed activity must not have any outstanding or unresolved findings of violation of the federal regulations governing the CDBG program; d. If applying for CDBG funds, the proposed use of funds meets at least one national objective for the CDBG program, as established by the Federal regulations; e. If applying for CDBG funds, the proposed use of funds meets at least one local objective for the CDBG program, as established by the City of Carlsbad’s Community Development Plan; and, f. If applying for HOME funds or CDBG funds which are not for public service category activities, the proposed use of funds must be for the purpose of increasing the availability of affordable housing for lower income households. 3. All complete applications, which have met the conditions outlined above, shall be considered eligible for funding consideration and shall continue in the activity selection and funding allocation process. All applications which are deemed ineligible for funding consideration shall receive written notification that the application for CDBG funds is ineligible due to a specified reason and will not be reviewed further by staff or the Advisory Committee. 4. The Advisory Committee will consider the needs of lower income Carlsbad residents in developing recommendations to the City Council for,the funding of activities which are the .“most qualified” to meet those needs. The Committee will consist of seven (7) members and will include the following representatives to be appointed by the City Council: Senior Commissioner, Planning Commissioner, Housing Commissioner, and four citizens-at-large (one from each quadrant of the City). 5. Each eligible application for funds shall be reviewed and evaluated, forranking .purposes, based upon the criteria outlined below. Housing and Redevelopment Department staff will evaluate each eligible proposal/application for funds and assign a score based on a maximum 100 point scale using the following criteria: a. ORGANIZATIONAL ABILITY/CAPACITY Maximum of 25 Points i. Experience of organization in providing services to 5 Points low/moderate income persons/households and in providing the proposed activity. ii. Capacity/ability of staff assigned to implement 5 Points proposed activity. ii. Organization’s experience with the administration 5 Points of CDBG or other State or Federal funds. iv. Level of ability demonstrated by organization to provide services and to adhere to applicable local, State, or Federal regulations governing funding sources. 10 Points b. FINANCIAL CAPACITY/STABILITY Maximum of 25 Points i. Leveraging of CDBG funds with outside resources 15 Points to finance proposed activity. II. Relatively stable financial position 10 Points C IMPLEMENTATION OF ACTlVlTY Maximum of 10 Points . APPLICATION REVIEW PROCESS PAGE 3 i. Demonstration of organization’s readiness to implement proposed activity 10 Points d BENEFITSIBENEFICIARIES Maximum of 40 Points i. Accessibility of activity for use by Carlsbad clients. IO Points ii. Extent to which proposed activity benefits low 10 Points income persons/households (50% of median family income). . . . III. Extent to which proposed activity benefits low 10 Points income Carlsbad households iv. Extent to which proposed activity meets the needs 10 Points of low income residents Housing and Redevelopment Department staff will initially evaluate the organization’s proposal according to the above pre-established criteria. A total of 100 points are available for each proposal. Each proposal will be ranked according to total points received in the evaluation process. A copy of the Evaluation Form is attached as Exhibit A for information purposes only. 6. To facilitate the complete evaluation of eligible proposals/applications, applicants will be given the opportunity to participate in a 10 minute interview with the CDBG Funding Advisory Committee and staff. The public will also be given the opportunity to comment on the eligible proposals being considered for funding. . The interview will provide the Advisory Committee and staff with an opportunity to obtain additional information regarding the organization and the proposed activity that may not have been provided, or was unclear in the application. Applicants should provide any documents which may assist the Advisory Committee and staff in evaluating the proposal/application p& to this interview. 7. Following the interview of each eligible proposal/application, staff will complete its evaluation of the proposal according to the criteria noted: above and then categorize the eligible proposals/applications in rank order into the following three classifications: -a.-- ..I)ublic~servicesc~it~f~~~-pwpssesCproviding~~aintaini~affo~a~le-housln-g;~ b. Public services/facilities for the purpose of providing general social services; and C. Public, services/facilities for the purpose of providing specialized social services for children and adults. This information will then be presented to the Advisory Committee for further review to determine the level of funding to be recommended for each proposal. 8. It is the Advisory Committee’s responsibility to make a recommendation on the level of funding to be allocated to the eligible activities according to the order the proposals/applications were ranked within each classification. The Advisory Committee shall work from the top of each list to the bottom, taking one proposal at a time on a rotation basis from each classification, and recommend a funding level for the proposal until all available CDBG funds have been allocated to eligible activities. This process will be used to make funding recommendations for both public service and affordable housing proposals. The minimum funding level for each recommended public service activity shall be $5,000 and $20,000 for affordable housing activities, but shall not exceed the requested funding amount. EXAMPLE: The Advisory Committee shall take the first public service activity listed within “Affordable Housing” and make a funding recommendation for this activity. Then, the Committee will consider a funding recommendation for the first public service activity listed under “General , ‘. APPLICATION REVIEW PROCESS PAGE 4 Social Services” and so on. Once a recommendation for funding has been made for an activity within each of the three classifications, the Committee will then move to the next activity listed. This process will be repeated to also develop funding recommendations for affordable housing proposals. COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUND ALLOCATION PROCESS PUBLIC SERVICE ACTIVITIES/PROJECTS Housing General Social Social Services - Services Children & Adults 1. 1. 1. 2. 2. 2. 3. 3. 3. 4. 4. 4. 5. 5. 5. TOTAL TOTAL TOTAL TOTAL FUNDS ALLOCATED TOTAL FUNDS AVAILABLE f FUNDS OVER/UNDER TOTAL AVAILABLE $ 9. The Advisory Committee’s funding recommendations will be presented to the City Council for action during a public hearing. All applications submitted and the funding recommendations made by the Advisory Committee will1 be submitted to the City Council for consideration by the end of April of each year, 10. After accepting public comments on the proposals and recommendations, the City ~-~~~~-6ouncikffay~~~e~~C~rnrni~ee’s-recornrnendations~rn~~-orrn~di~~~~m-ids-~-~~~~-~~- necessary to meet the needs of low/moderate income persons within the community. 11. Following City Council action, a Consolidated Funding Plan, including the list of selected activities and funding amounts for the CDBGlHOME Program, will be submitted to the U.S. Department of Housing and Urban Development for final approval.